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I’m convinced that there is a viable business model in app development. Not necessarily for the consumer market, but as a boutique software development to develop for corporate, legal and medical markets
As you know,  the apple ipad was just announced yesterday . It is very impressive and could be potentially very profitable line for developers. There is an Android (Google) tablet out there as well; actually several makers.                                                                                                                                                                At the risk of being redundant… There is a huge market for apps, a huge market for mobile computing and trends point to telecommunications companies are ramping up to handle traffic for data traffic.
Reasons why I think this is doable :1.      Cost of entry is relatively low. The mobile device like the ipad cost about 500 dollars. The android tablets are approximately the same price.  The software development kits are cheap or free. The development platform require a medium powered pc or Intel based Macintosh ( a Mac mini is around a $600 price point)2.      Apple and Microsoft, Cisco had made a significant commitment to mobile market and distributing 3.      web services and to cloud and so called grid  computing. 4.      Most of internet traffic outside of the United states and Canada is mobile based using smart phones, netbooks and laptops as their primary means of internet consumption.5.      Increasing amounts of home and office appliances, office devices (printers copiers) are being embedded with computers that are designed to communicate  with the internet, Office and home networks. This also extent to automobiles and heavy equipment  as well as consumer electronics. With the proper applications, These mobiles devices like smart phones can act as monitors and control dashboards for these embedded devices., Let’s not forget  medical markets where mobility and telemetry are premium commoditiesI am just spitballing here.